As Cambridge experts gather to discuss future of Bitcoin, we ask: is the virtual currency a force for freedom and change – or a gift for money launderers and the black market?

A controversial virtual currency will come under the spotlight as experts gather in Cambridge to discuss the future of online currencies and whether to consign the pound to the past.

The volatile ‘cryptocurrency’ Bitcoin exploded into the mainstream last year when the value of a single bitcoin leapt from $13 to $1,000, although it has since declined to around $430 to one bitcoin.

Bitcoin is used online and in some shops as an alternative to traditional currencies, but has caused a stir as it operates independently of governments and central banks.

Writer Brett Scott will discuss Bitcoin with experts from the Cambridge Bitcoin Group at free event called ‘Bitcoin: A Disruptive Innovation’ at Anglia Ruskin University (ARU) tomorrow, organised by Freya Stevens who is responsible for the first bitcoin podcast in the UK.

Dr Joss Hands, Reader in Media and Critical Theory at ARU, said: “Bitcoin is potentially one of the most far-reaching inventions of the digital age. While there has been a lot of hyperbole about the power of Bitcoin as a force for freedom and change, the jury is still out on whether taking currencies out of government control really puts power in the hands of the people, or rather takes it away by giving it to other, less accountable, forces.”

Bitcoin has attracted a fair level of controversy, with restrictions on its use in places such as China, Iceland and Lebanon.

There has been criticism over its lack of regulation, leading to fears it can be used for money laundering and black market purchases.

But Bitcoin enthusiasts in Cambridge have argued the technology is very transparent and its use for nefarious purposes is on the decline.

Programmer Dankrad Feist, a member of the Cambridge Bitcoin Group, said: “It’s not actually anonymous but pseudonymous, so if you are making transactions then even if you don’t use your name it will be registered to your address and anyone will be able to see where you spend it.”

The 29-year-old said there were security concerns about acquiring bitcoins from online exchanges which can suddenly go bust – like leading exchange Mt Gox. did in February.

Justin Drake, 25, is an electronics engineer and programmer for Argon Design, in the Cambridge Science Park. He said: “I wasn’t really old enough to remember the beginnings of the internet but there is a parallel, I think, with this technology. There is this excitement. Many people see it as an opportunity to rebuild services which are clunky or to replace business models with something fresh.”

Anastasia Zolotareva, 28, who works in publishing, said she has bought bitcoins as an investment.

She said: “The technology we have here is in its very early stages. Even if Bitcoin doesn’t survive then some other digital currency will in its place.”

The group has purchased a Bitcoin ATM which they intend to set up in the St John’s Innovation Centre, in Milton. The ATM would be the first in the UK outside of London.

Some businesses in Cambridge already allow customers to pay in bitcoins, including the Haymakers pub, in Chesterton, which started taking the payment in 2013.

Punters use their smart phones to scan a QR code generated by the till, then pay for their drink through their online Bitcoin wallet.

A spokeswoman for the pub said: “We get quite a bit of trade because we are around the corner from the Science Park, where there are lots of technology workers.

“It’s not a huge percentage of our takings but we are keen to have it as part of the business.”

‘Bitcoin: A Disruptive Innovation’ will be held at 6pm tomorrow at ARU, in Cambridge.

A Bit of history:

Bitcoin was created in 2009 by developer Satoshi Nakamoto, who claims to be a Japanese man in his 30s but is often believed to be a group of people using a pseudonym.

It has been described as a ‘decentralised currency’ as it operates independently of governments and central banks, so it is maintained by the online community of users.

The currency can be acquired most commonly from online exchanges and marketplaces.

Technology buffs can also acquire bitcoins by investing in complex ‘mining’ software where users solve a series of complex equations which add to the bitcoin chain. People who help with the mining process are rewarded with bitcoins, as this helps maintain the currency.

It can be used to make purchases online and in some shops, although Bitcoin is a volatile currency so prices are often given in sterling or dollars and then converted.